GREENWICH, CT—Starwood Capital Group reportedly doubled the amount of equity raised for its Starwood Distressed Opportunity Fund X, with an interim close bringing the tally up to $4.2 billion. PERE reported Tuesday that the success of the interim close puts the fund comfortably within its $4-billion to $5-billion fundraising goal; a final close is expected by the end of the year.

To date, about 20% of Fund X has been committed both domestically and in Europe, PERE reported, most notably in the $1.4-billion acquisition of seven retail properties from Taubman Centers for $1.4 billion. The deal closed last week.

The new fund, which held its record-setting first close in July at $2.1 billion, will pursue an investment strategy similar to that of Fund IX: investments in distressed debt; value-added, income-producing properties; and corporate recapitalizations. However, Fund X will be evenly divided between Europe ands the US, whereas its predecessor was 60% weighted toward the US.

PERE reported that documents from the pension plans that have committed capital to Fund X show that it's targeting an IRR of 18% to 20%, a net return of 14% to 18% and a 2x multiple. As much as half the total return is expected to derive from current income, with an 8% to 10% current yield, while the remainder will come from appreciation.